Gazprom may demand $5bn from Minsk

Gazprom has the right to require the Belarusian authorities to buy out Beltransgaz’s shares earlier sold to the Russian giant at $5 billion in case of failure to perform a number of provisions of the inter-governmental agreement on purchase and sale conditions and further activity of Beltransgaz.

Under the agreement, as Prime agency has learned, "on the demand of Gazprom, the Belarusian party shall pay $5bn to buy out Beltransgaz's shares earlier sold to Gazprom and compensate Gazprom for the losses that may occur in this regard" in case of failure to perform any condition under the agreement.

The conditions include, in particular, using the gas purchased from Gazprom only in the territory of Belarus; ban on siphoning off gas from the gas flow transported through Belarus; unhindered and uninterrupted transportation of gas from Russia via the territory of Belarus.

The conditions also include a ban to change the conditions of the use of land plots occupied by item of immovable property of the Belarusian part of Yamal-Europe pipeline in accordance with the legislation of Belarus as in effect on the date of signing the agreement.

Other conditions are: the exclusive rights of Beltransgaz to buy natural gas transported from Russia for Belarusian consumers; non-exercise of special rights of running Beltransgaz that would violate or restrict the rights given to Beltransgaz shareholders in accordance with the applicable legislation on business entities, including introducing an exclusive right (the golden share) to take part in running the Belarusian gas transportation company.